The New York-listed SFL Corporation Ltd. (SFL) has agreed to sell seven tankers, currently on time charters to Singapore-based commodity trading company Trafigura.
The package comprises four 2014- and 2015-built LR2 product tankers and three 2019-built suezmax tankers.
The vessels were acquired in 2021 and 2022 and, according to SFL, the charter agreements include a profit share mechanism in the event of a profitable sale.
In accordance with SFL’s fleet list, the ships chartered to Trafigura are the 115,000 dwt product tankers SFL Puma (2015-built), SFL Panther (2015-built), SFL Tiger (2015-built), SFL Lion (2014-built) and the 2019-built suezmax trio 150,000 dwt Marlin Shikoku, Marlin Santorini, Marlin Sicily.
The company has now agreed to sell the vessels to Trafigura with delivery in the fourth quarter of 2026 and the first quarter of 2027.
The existing charters will terminate when the vessels are delivered to the buyer.
The sales price per vessel is confidential, SFL said, but after profit share and repayment of associated debt, the net cash proceeds to the company is estimated at approximately $275m in aggregate.
Currently, SFL estimates an aggregate book gain of around $175m from the transaction.
Ole B. Hjertaker, chief executive officer of SFL Management AS, commented: “This transaction demonstrates the intrinsic value of our operating platform.
“We have enjoyed strong cash flows from the vessels over the last five years, and in addition retained a significant share of the asset value upside, which is crystallizing now. We expect to reinvest the proceeds in new accretive investments that will build our long-term distribution capacity.”
